C.O.D. SYSTEM

Dominion, Volume 21, Issue 303, 22 September 1928, Page 8

C.O.D. SYSTEM

CLOSE EXAMINATION DEEMED NECESSARY COMMISSION TO INQUIRE GOVERNMENT’S DECISION The appointment of a commission at an early date to investigate the system of cash order trading was announced by the Prime Minister (Rt. Hon. J. G. Coates) yesterday. The attention of the Prime Minister was drawn recently to the growth of the system of cash order trading in the Dominion. The general effect of cash order trading is to enable intending purchasers of certain classes of goods to secure those goods by means of orders issued by firms which undertake to pay the purchase price to the retail supplier, subsequently collecting the amount of the order iu instalments from their client. The cash order company in practically all instances charges its clients a premium on the amount of the order, and also secures a relatively substantial discount from the retailer. Certain features, of this system are alleged to be uneconomic and socially undesirable, and the Government has been urged to take action against the unrestricted development of this method of encouraging credit trading. Strong criticism of the system has been voiced iu the Commonwealth of Australia where cash order trading has recently shown marked growth. Iu reply to a question yesterday, the Prime Minister stated that, at the direction of the Minister of Industries and Commerce (Hon. A. D. McLeod) some inquiries had already been made, both in the Dominion and in Australia. The Government considered that the facts already elicited justified close consideration of the system, the extent to which it was at present, or was likely to become, prevalent, and the social and economic merits or evils of the system. The Government therefore proposed to appoint at an early date a commission under the Commissions of Inquiry Act, 1908, to make full investigation into the matter, and to report as to any legislative or other action which might be considered necessary.